Climate Change Data

Environmental Metrics

ESG Focus Areas

• Youth Opportunity
• Climate Change
• Circular Economy
• Sustainable Sourcing
• Commitment to Families
• Diversity and Inclusion
• Ethics and Integrity and the fight against corruption

Environmental Achievements

• Measured Scopes 1, 2, and 3 greenhouse gas emissions for the first time.
• Achieved 100% of primary fiber-based guest packaging sourced from recycled or certified sources, supporting deforestation-free supply chains.
• Increased renewable energy use from 4% to almost 12%.

Social Achievements

• Impacted more than 398,000 young people across the region through youth opportunities initiatives.
• Removed artificial flavors, colors, and preservatives from Happy Meal ingredients.
• Trained all company employees on sexual diversity.
• Achieved 91% employee satisfaction rate.

Governance Achievements

• Became the first quick service restaurant operator in the region to tie its financial strategy to climate change commitments by issuing a Sustainability-Linked Bond.
• Only company in the industry to tie ESG metrics to executive compensation.
• No incidents of corruption reported.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions and supply chain emissions.
• Transitioning to cage-free eggs and eliminating antibiotics classified as critical to human health.
• Eliminating deforestation from the supply chain.
• High youth unemployment in the region.
• Reducing waste generation and increasing recycling.
• Increasing the number of female executives.

Mitigation Strategies

• Implemented the Sustainable Development Program in restaurants.
• Partnered with suppliers to meet sustainability standards.
• Developed and implemented online programs to educate the public on sustainability topics.
• Developed training programs for young people.
• Implemented initiatives to reduce energy and water consumption.
• Implemented waste reduction and recycling programs.
• Focused on empowering women to achieve their highest potential.

Supply Chain Management

Supplier Audits: 382 facilities with self-assessment; 282 facilities with SWA third-party audit; 276 facilities with SQMS audit; 54 facilities with PQMS audit

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Essential option), SASB standards for the Restaurant sector

Third-party Assurance: Ernst & Young (EY)

Awards & Recognition

• Top 10 ranking of Companies Committed to Youth (International Youth Organization for Ibero-America and the International Organization of Human Capital Managers)
• United Nations Municipal Seal for Human Rights and Diversity
• DERES 2021 for Best Practices by Companies on All Sustainable Issues
• Equipares Seal in Colombia, Silver Category
• Equity and Conciliation Seal
• Apsal Award
• Ba Convive Certificate
• Empresa Inclusiva 2021 Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Sustainable Sourcing
• Youth Opportunity
• Commitment to Families
• Diversity and Inclusion

Environmental Achievements

• More than doubled the usage of renewable energy sources in 2022, reaching 29% of the energy matrix.
• Became the first quick service restaurant operator in the world to link its financing strategy to environmental targets by issuing a Sustainability Linked Bond.
• Reduced single-use plastics by more than 1,700 tons since 2017.
• 100% of used cooking oil recycled for further use.

Social Achievements

• Provided access to formal jobs for more than 2 million young people, three years ahead of schedule.
• Offered 14 short courses through MCampus Comunidad, with almost 100,000 registered users.
• Launched Espacio Azul, a social inclusion initiative for people with Autism Spectrum Disorder (ASD), now operating in 11 countries.
• Expanded women’s network to the restaurant level.

Governance Achievements

• Issued a Sustainability-Linked Bond (SLB), the first in the restaurant industry regionally, linking financing strategy to sustainable development goals.
• No incidents of corruption reported in 2022.
• 100% of new suppliers signed the Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• High youth unemployment rates in Latin America and the Caribbean.
• Supply chain disruptions due to raw material shortages (e.g., plastics).
• Increase in Scope 1 emissions due to refrigerant gas consumption.

Mitigation Strategies

• Developed MCampus Comunidad educational platform.
• Developed alternative sourcing strategies for packaging materials.
• Developed a plan to standardize procedures for refrigerant gas replacement, recovery, and recycling.

Supply Chain Management

Supplier Audits: 100% of suppliers audited with SWA, SQMS, PQMS, GMP audits.

Responsible Procurement

• Supplier Code of Conduct
• Deforestation-Free Beef Procurement Policy
• Sustainable sourcing requirements for priority commodities (beef, soy, palm oil, coffee, fiber).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB Materiality Map

Certifications: Null

Third-party Assurance: Ernst & Young (EY)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EIKON award (Argentina)
• Recognition from Chilean government